A sound investment process and strong management team underpin iShares Core Dividend ETF's Morningstar Medalist Rating of Gold. The portfolio maintains a cost advantage over competitors, priced within the lowest fee quintile among peers.  

 The strategy's investment process inspires confidence and earns a High Process Pillar rating. Independent of the rating, analysis of the strategy's portfolio shows it has maintained a significant overweight position in yield exposure and liquidity exposure compared with category peers. High yield exposure is attributed to holding high dividend-paying or buyback stocks, and is suitable for income seekers outside of fixed-income. And a high liquidity exposure is rooted in stocks with higher trading volumes, lending managers more flexibility. The strategy’s management team earns an Above Average People Pillar rating. The strategy's parent organization earns the firm an Above Average Parent Pillar rating. People Pillar and Parent Pillar ratings for this strategy are indirectly assigned by a Morningstar analyst rather than algorithmically derived. Please see the notes following each pillar section for more details. The details of assigning methods can be found in each pillar section.

Analyst Rating

Cisco Systems

Broadcom

Exxon Mobil

Texas Instruments

QUALCOMM

Chevron

JPMorgan Chase & Co

Comcast

Procter & Gamble

Morningstar's evaluation of this security's process aims to determine the likelihood that it will outperform its Morningstar Category benchmark on a risk-adjusted basis over the long term. iShares Core Dividend ETF earns a High Process Pillar rating. 

The most significant contributor to the rating is that this fund tracks an index. Historical data, such as Morningstar's Active/Passive Barometer, finds that passively managed funds have generally outperformed their active counterparts, especially over longer time horizons. Respectable risk-adjusted performance also influences the rating. This can be seen in the fund's five-year alpha calculated relative to the category index, which suggests that the managers have shown skill in their allocation of risk. The firm's five-year retention rate of 92% supports the rating as well.

 This strategy hews closely to the market cap and investment style of its Large Value category peers. Looking at additional factor exposure, this strategy has continually had more high-yield exposure than the Morningstar Category average during recent years, with the portfolio holding more stocks with high dividend or buyback yields. High-yield stocks tend to be connected to more mature companies earning enough cash to return some to shareholders. At times, however, extreme market pressure can force them to cut their dividends, which hurts stock performance. In recent months, the strategy was more exposed to the Yield factor compared with its Morningstar Category peers as well. This strategy has also been exposed to liquid stocks during these years. This gives the managers more flexibility during bear markets to sell without adversely affecting prices. Compared with category peers, the strategy also had more exposure to the Liquidity factor in the most recent month. In addition, this strategy has exhibited a tilt toward higher-volatility stocks in these years, meaning companies that have a higher historical standard deviation of returns compared with peers. This orientation tends to pay off most prominently when markets are hot. In this month, the strategy also had more exposure to the Volatility factor over its peers. More information on a fund and its respective category's factor exposure can be found in the Factor Profile module within the Portfolio section. 

 The portfolio is overweight in technology by 13.5 percentage points in terms of assets compared with the category average, and its energy allocation is similar to the category. The sectors with low exposure compared to category peers are healthcare and industrials, underweight the average by 4.4 and 2.6 percentage points of assets, respectively. The portfolio is positioned across 410 holdings and is relatively concentrated. In particular, 29.5% of the fund’s assets are housed within the top 10 holdings, compared with the category’s 27.4% average. And finally, in terms of portfolio turnover, on a year-over-year basis, 65% of the fund's holdings have changed, whether through increasing, decreasing, or changing a position.

High

Process

iShares Core Dividend ETF benefits considerably from its team, earning it an Above Average People Pillar rating. There are three managers listed on the fund: Paul Whitehead, Jennifer Hsui, Greg Savage. Experience on the team is abundant, with 18 years of average portfolio management experience. Together, they manage a total of 257 strategies, with a Silver asset-weighted average Morningstar Medalist Rating, demonstrating their potential to deliver positive alpha relative to the category median in aggregate.  

 Note: This People Pillar rating is indirectly assigned by an analyst. Morningstar analysts evaluate the People Pillar for passive products at the brand level and may also differentiate by asset class. There is at least one other passive strategy at the firm that is covered by a Morningstar analyst, so the People Pillar rating of the fund is inherited from the rating that the Morningstar analyst assigned to investment vehicles under the same brand name.

Above Average

People

BlackRock offers compelling options across asset classes and vehicles. It earns an Above Average rating for Parent. 
The firm’s approximately USD 8 trillion in assets under management, as of Sept. 30, 2022, gives it unparalleled scale and influence. It is a market-leading index fund provider globally, and its iShares exchange-traded fund franchise offers a low-cost lineup of core funds that investors can use to build a well-diversified portfolio for dirt cheap. The firm can be more adventurous in its ETF launches than some peers, so not everything it launches is appropriate for the masses. As a result, it is likely to have more ETF closures than peers that stick to the basic building blocks.  
The firm’s active fixed-income and multi-asset efforts also stand out as some of the best in the industry. Those benefit from BlackRock’s commitment to building a first-class risk management system via its Aladdin analytics software. The software is also available for sale to other firms and has proved to be a popular option for competitors, a testament to its usefulness. 
More recently, the firm has shifted its focus to ESG offerings and incorporating ESG across its investment lineup, leading to a political backlash in the United States.
BlackRock isn’t the best at everything it tries to do, but retail investors, financial advisors, and large institutions could all build robust portfolios using BlackRock’s products.

Parent

iShares U.S. Dividend & Buyback ETF

DIVB tracks an index of all-cap US stocks that have a history of dividend payments and/or share buybacks.

AdvisorShares Dorsey Wright ADR ETF

Global X SuperDividend US ETF

First Trust BuyWrite Income

Invesco International BuyBack Achievers ETF

Invesco Buyback Achievers ETF

Schwab US Dividend Equity ETF

80% of S&P 500 companies are entering pre-earnings buyback blackouts, according to Bloomberg. Analysts anticipate a potential rebound post-blackout.

Buyback Bonanza: The Top 7 ETFs to Profit From Corporate Cash Splurges

DIVB is a well-diversified total shareholder yield ETF with a low 0.05% expense ratio. A strategy change in December 2022 boosted its dividend yield to approximately 3%. While DIVB's actual dividend growth prospects aren't as strong as they look on paper, they're still solid. Among large-cap value ETFs, it ranks above average on dividend yield, growth, and consistency. However, a weak dividend safety and low 2.07% estimated earnings growth rates are key weaknesses. DIVB's low P/E compensates investors, but it's not built for bull markets or high-interest-rate environments.

DIVB: A Well-Diversified, Low-Cost Total Shareholder Yield ETF Worth Watching

Investors seeking momentum may have US Dividend and Buyback iShares ETF DIVB on radar now. The fund recently hit a new 52-week high.

Buyback & Dividend ETF (DIVB) Hits New 52-Week High

A meticulous quest to find a suitable dividend growth ETF partner for Schwab U.S. Dividend Equity ETF (SCHD) between iShares Core Dividend ETF (DIVB) and iShares Core Dividend Growth ETF (DGRO). Deep dive into a comprehensive analysis of DIVB's portfolio strategy, performance, and fit as a contender for a dividend growth focused fund. DGRO's dividend growth stability, conservative weighting, and enhanced diversification lead to a strategic decision in favor of DGRO over DIVB.

DIVB: How This ETF Influenced My Next Core Dividend Growth Holding

Cambria Shareholder Yield ETF

DIVB is an equity index ETF that focuses on U.S. equities with above-average dividend payments and share buyback programs. SYLD is a better option than DIVB, with a cheaper valuation and stronger performance track-record. An overview of DIVB, and comparison to SYLD, follows.

Consider Selling DIVB And Buying SYLD Instead

iShares Core Dividend ETF has significant exposure to IT and financials, with financials showing reasonably good YoY performance. The S&P 500 is also exposed to IT and healthcare but has less exposure to financials compared to DIVB. Macroeconomic factors, such as interest rates, will impact financial institutions and IT stocks, with potential risks to the U.S. economy.

DIVB: Doesn't Escape Benchmarks

iShares Core Dividend ETF provides exposure to U.S. companies with strong track records of distributing funds to shareholders. The ETF offers a tight expense ratio of 0.05% and a relatively strong dividend yield of 3.30%. The fund has a diversified portfolio with no concentration risk, and while it appears undervalued, returns may be constrained by the risk-averse nature of the fund.

DIVB: Dividend-Paying U.S. Stocks Look Cheap

Communication Services Select Sector SPDR Fund

Technology Select Sector SPDR Fund

Health Care Select Sector SPDR Fund

Buybacks are waning lately as borrowing costs are rising and cash reserves are shrinking.

ETFs to Win/Lose on Reduced Buybacks

DIVB: Shareholder Yield Is A Good Idea, But Cambria Did It Better.

DIVB: Shareholder Yield Is A Good Idea, But Cambria Did It Better

In the fourth quarter, S&P 500 companies shelled out about $189 billion on stock buybacks, up 2% from the third quarter.

Time to Tap Buyback ETFs?

iShares Core Dividend Growth ETF

iShares Core High Dividend ETF

Since 1926, nearly one-third of the S&P 500's total return has come from dividends, and over 50% in decades featuring rising interest rates, slowing growth, and geopolitical uncertainty. Bond yields have risen but dividend-paying stocks can help diversify your sources of income while providing potential upside. As in 2022, investors may continue to reward companies with the characteristics associated with dividend payers.

Why Dividend Stocks Are Back In Fashion (And Never Go Out Of Style)

DIVB tracks the Morningstar U.S. Dividend and Buyback Index, selecting securities on the basis of dividend yield and net buyback yield. The Index normally reconstitutes annually in June. However, an "exceptional" reconstitution occurred effective December 16, with two key changes to the Index methodology.

DIVB: 3% Yield, Uncertain Growth After Surprising Index Changes

DIVB's expense ratio fell to 0.05% from 0.25% in October and is now considered a leader in the dividend ETF space on fees. The total shareholder yield strategy, which considers both dividends and buybacks, results in high-quality selections. DIVB has a 9.42/10 Profitability Score, better than 90% of dividend-themed ETFs.

DIVB: Cheaper Fees, Good Growth, And Excellent Valuation

Apparently, this ETF contains stocks that return capital through dividends and/or buybacks to shareholders. There's really not a lot of companies that don't even when getting deep into mid-cap territory.

DIVB Doesn't Look Like A Yield King

ProShares S&P 500 Dividend Aristocrats ETF

SPDR S&P Dividend ETF

Vanguard Dividend Appreciation ETF

U.S. corporate buybacks have been robust in recent months. But the Inflation Reduction Act includes 1% excise duty on repurchases.

Buyback & Dividend ETFs In Light of Inflation Reduction Act

DIVB holds a portfolio based on dividends and buybacks. Technology and financials are the heaviest sectors.

DIVB: Combining Dividend And Buybacks

A reader asked for my thoughts on DIVB. DIVB invests in companies with a history of dividend payments and buybacks.

DIVB: Dividend And Buyback ETF, Solid Strategy And Performance, Lackluster 1.8% Yield

In this article, I start by explaining why dividends and buybacks have such a big impact on long-term investments. A great way to focus on dividends and buybacks is by buying the iShares US Dividend and Buyback ETF.

Buying Both Dividends And Buybacks With The iShares DIVB ETF

Corporate America is still sitting on huge cash stores that could be deployed to return value back to investors through actions such as share buybacks. Investors who are interested in focusing on these types of companies can consider targeted exchange traded fund strategies.

As Corporate America Looks to Redeploy Cash, Consider a Buyback ETF Strategy

Consumer Discretionary Select Sector SPDR Fund

Buyback announcements by U.S. companies reached a record level in the fourth quarter of 2021.

ETFs to Tap Record S&P 500 Buybacks in Q4

DIVB is titled towards large-caps. The fund appears to be cost-efficient and offers a decent yield.

How Does The iShares U.S. Dividend And Buyback ETF Compare With Other Distribution-Themed ETFs?

Aptus Collared Income Opportunity ETF

VictoryShares US Large Cap High Div Volatility Wtd ETF

VictoryShares US Small Cap High Div Volatility Wtd ETF

First Trust Dorsey Wright Momentum & Dividend ETF

WisdomTree U.S. SmallCap Dividend Fund

Siren DIVCON Dividend Defender ETF

WisdomTree US Smallcap Quality Dividend Growth Fund

WisdomTree US Quality Dividend Growth Fund

WisdomTree U.S. High Dividend Fund

Amplify CWP Dividend & Option Income ETF

Invesco Dow Jones Industrial Average Dividend ETF

WisdomTree U.S. LargeCap Dividend Fund

WisdomTree U.S. MidCap Dividend Fund

WisdomTree U.S. Total Dividend Fund

WisdomTree Dividend ex-Financials Fund

VanEck Morningstar High Dividend ETF

iShares Select Dividend ETF

First Trust Morningstar Dividend Leaders Index Fund

Fidelity Dividend ETF for Rising Rates

Fidelity High Dividend ETF

First Trust Hedged BuyWrite Income ETF

Each month, I give a broad overview of dividend and income-focused ETFs, selecting them from my growing database of about 750 funds. I've added a seventh category to this monthly series: risk management ETFs, bringing the total number of funds analyzed to 88.

December Dividend And Income ETF Report: The Ultimate Investors Guide

After a strong year of earnings, corporate America could spend more on share buybacks and dividends in 2022, potentially supporting exchange traded funds that target the buyback theme. Howard Silverblatt, a senior index analyst at S&P Dow Jones Indices, a unit of S&P Global Inc., argued that companies have made a strong recovery from the [.

ETFs to Capture Increasing Company Buybacks in 2022

DIVB is a passively managed smart-beta fund for shareholder yield exposure. The purpose of the article is to discuss the investment decisions made by the fund since June when I covered DIVB for the first time and briefly touch upon its performance.

DIVB: Discussing Portfolio Changes

DIVB is based on the concept of shareholder yield, which includes dividends and buybacks, but has a disappointing trailing yield of 1.64%. It looks to be a bloated fund with over 300 constituents weighted based on aggregate shareholder dollars paid out, and I can't find many reasons to buy it.

News for iShares U.S. Dividend & Buyback ETF ETF (DIVB)